Friday 6th January 2017
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Restaurant Brands New Zealand says its deal to buy Pacific Island Restaurants (PIR), the largest fast-food operator in Hawaii with 82 Taco Bell and Pizza Hut stores, has been delayed until the end of February.
The fast-food retailer announced it had entered into a conditional agreement to buy PIR in October, but "due to the delay caused by the Christmas/New Year period", the franchisor's approval is now expected to be received by the end of February, Restaurant Brands said in a statement to the NZX today.
The company will update the market on the proposed settlement date once approval has been obtained, it said. It had expected to complete the US$105 million purchase by late December.
Restaurant Brands NZ raised $94 million in November last year to help fund the acquisition; $52 million from institutions and $42 million from retail investors, through the offer of one new share at $4.70 apiece for every 5.15 shares already owned.
The company is expanding into new markets to spread its risk and drive future earnings growth. In April 2016, it bought the biggest KFC franchisee in New South Wales, Australia.
Restaurant Brand shares last traded at $5.17, up 1 percent today, and have gained 20 percent in the past year.
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